Supermarket and Consumer Electronics Chain Bubugao to Raise RMB 3.4 Bln
Bubugao, 6/03/15
Hunan-based supermarket and consumer electronics retail chain Better Life Commercial Chain Share (002251.SZ), also known as Bubugao, released its non-public share issuance proposal on June 1. Better Life plans to issue no more than 128.4 mln shares at a price of no less than RMB 26.47. The total amount of raised capital will be no more than RMB 3.4 bln. Better Life Investment Group, a large shareholder of Better Life Commercial, will subscribe to 20% of the shares. Better Life Investment also ensured that it will not reduce its holding-shares for 3 years.
Of the raised capital, RMB 1.1 bln will be used for building Bubugao's B2C e-commerce site Yunhou consisting of 5 sub-platforms: the Yunhou website, a payment platform, logistics platform, O2O convenience store platform and a membership platform. RMB 900 mln will be used for the construction of Bubugao International Plaza in the city of Xiangtan in Hunan province. RMB 800 mln will be used to repay bank loans, while RMB 570 mln will be used in building 33 chain stores.
The proposal revealed that after the completion of the 3 fundraising projects: Bubugao B2C e-commerce site Yunhou platform, Bubugao International Plaza and the chain-store construction, these 3 projects are expected to bring sales revenues of RMB 4.178 bln, RMB 1.036 bln and RMB 2.43 bln to the public company respectively, with an annual sales revenue increase of RMB 7.644 bln.
Editor's Note: For more information on this topic, please see "B2C E-commerce Site Yunhou Launches Cross-border E-commerce Channel," MD 3/27/15 issue.
Keywords: financing M&A e-commerce Internet retail B2C Bubugao logistics 002251.SZ O2O Better Life
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